Citizens Financial Sees Profit Soar 32% on Strong Income Growth

Citizens Financial Group announced a substantial 32% increase in its fourth-quarter profit, reporting a net income of $528 million. This impressive financial performance, equivalent to $1.13 per share, significantly surpassed the $401 million reported in the same period last year. The earnings beat was largely attributed to a 9% rise in net interest income, which reached $1.54 billion, bolstered by a 20-basis-point expansion in its net interest margin.

Beyond interest income, the bank's non-interest income also saw a healthy 8% increase, totaling $620 million. This growth was driven by strong contributions from its wealth management and capital markets businesses. Wealth fees climbed 31% and capital markets fees rose 16%, benefiting from increased debt and equity underwriting and loan syndication activities.

This period also saw Citizens Financial Group's stock reach an unprecedented all-time high of $64.27, closing at $64.06, a 7% increase for the day. CEO Bruce Van Saun expressed optimism about the company's strategic investments, noting the positive impact of their private bank and expanded outreach in capital markets. Despite the U.S. government shutdown in October causing some delays in mergers and acquisitions, the bank's underlying performance remained strong.

Looking ahead, analysts anticipate Citizens' "Reimagine" initiative to potentially boost its return on tangible common equity by approximately 2% by 2028. The bank's strategy focuses on enhancing customer experience, reducing attrition, and improving product usage. In separate news, Citizens' CEO publicly opposed President Trump's proposal to cap credit card interest rates, aligning with industry leaders who believe such a cap could negatively impact the economy and consumers.